Manila, May 19 -- The Department of Transportation (DOTr) has signed an agreement with the Land Bank of the Philippines (LandBank) to help settle a PHP3.6-billion contractual obligation to Light Rail Manila Corporation (LRMC), the private operator of the Light Rail Transit Line 1 (LRT-1).

In a news release on Tuesday, DOTr acting Secretary Giovanni "Banoy" Lopez said the agreement is meant to address the contractual obligations of the DOTr-Light Railway Transit Authority (LRTA) to LRMC in line with President Ferdinand R. Marcos Jr.'s order to settle its duties with the private concessionaires.

In particular, the credit line agreement with LandBank will help make partial payments to the private operator of the LRT-1.

"We hope that as we...